RBI monetary policy June 2018: MPC hikes repo rate by 25 bps to 6.25%
The last time RBI had raised the repo rate was in January 2014, by 25 bps to 8.00 percent. Since then, it has either cut rates or maintained the status.
In the six-member MPC, headed by RBI governor Urjit Patel, all six members voted for a rate hike.
1. RBI hikes key lending rate (repo) by 0.25 per cent to 6.25 pc
2. Rate hike is the first in four-and-half-years
3. Reverse repo rate stands at 6 pc, bank rate at 6.50 pc
4. Growth projection retained at 7.4 pc for 2018-19
5. Projects retail inflation at 4.8-4.9 pc for April-September, 4.7 pc in H2
6. Major upside risk to the inflation path as price of crude rose by 12 pc
7. Volatile crude oil prices adds to uncertainty to the inflation outlook
8. Investments recovering well; to get boost from swift resolution under IBC
10. Geo-political risks, financial market volatility, trade protectionism to impact domestic growth
11. Adherence to budgetary targets by the Centre and states will ease upside risks to the inflation outlook
12. All members of the monetary policy committee voted for 0.25% rate hike
13. Next meeting of the MPC on 31 July and 1 August.
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